If you have room in your portfolio for some new additions in March, then it could be worth checking out the ASX 200 stocks listed below.
They have just been named as "preferred" picks by the team at Bell Potter. Here's what the broker is saying about them:
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Coles Group Ltd (ASX: COL)
A new addition to its preferred picks list is supermarket giant Coles.
The broker was impressed with Coles' stronger than expected first-half profit and sees plenty of opportunities for management to improve profitability further. It said:
We add Coles to our preferred stock panels following its 1H24 financial result where Coles reported 1H24 EBIT of $1,064 million, ~5% ahead of our estimates and consensus. Management has multiple levers to profit improvement including: 1) Private label positioning attracting price conscious consumers, 2) further reductions in theft rates through technology and operational improvements, 3) growing Coles 360 media income off a low base, and 4) productivity improvements enabled by investments in Witron automated DCs etc. Coles remains our preferred Supermarket with our FY25 forecasts ~5% above consensus.
Bell Potter has a buy rating and $19.00 price target on the company's shares.
Transurban Group (ASX: TCL)
Another ASX 200 stock that has been named as a strong buy by analysts at Bell Potter is toll road operator Transurban.
Bell Potter believes it is well-positioned for low-risk growth thanks to its inflation-linked revenue stream. It said:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
The broker has a buy rating and $15.60 price target on Transurban's shares.
